Tax Credits Technical Manual

Entitlement: Residence rules - Right to reside: A worker and Jobseeker

The Treaty on the Functioning of the European Union - Article 45

Employed workers - European Economic Area (EEA) or Swiss nationals

The Court of Justice of the European Union (CJEU) [formerly European Court of Justice (ECJ)] interpreted a worker as a person who:

undertakes genuine and effective work;

under the direction of someone else;

for which he is paid.

A person who is no longer working continues to be treated as a worker and remains a qualified person, if they:

are temporarily incapable of work as a result of illness or accident

or

are duly recorded as involuntarily unemployed after being employed in the United Kingdom, provided they registered as a jobseeker with the relevant employment office, and

were employed for one year or more before becoming unemployed;

were unemployed for no more than six months; or

can show they are seeking employment in the United Kingdom and have a genuine chance of being engaged;

or,

are involuntary unemployed and have started vocational training; or

have voluntarily stopped working and started vocational training that is related to their previous employment.

A person who takes time off work in connection with childbirth or placement for adoption and intends to return to their employment once that leave expires remains a worker whilst on statutory leave from their employer.